(RTTNews) – The South Korea stock market has finished higher in two of three trading days since the end of the three-day losing streak in which it had cratered more than 1,170 points or 18.2 percent. The KOSPI now sits just beneath the 6,360-point plateau and it’s expected to open to the upside again on Wednesday.
The global forecast for the Asian markets is upbeat on falling crude oil prices and optimism for an end to hostilities in the Middle East. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.
The KOSPI finished modestly higher on Tuesday as gains from the technology stocks and financial shares were capped by weakness among the automobile producers.
For the day, the index climbed 101.50 points or 1.62 percent to finish at 6,358.95 after trading between 6,080.25 and 6,389.40. Volume was 310.58 million shares worth 27.87 trillion won. There were 786 gainers and 95 decliners.
The lead from Wall Street is strong as the major averages opened solidly higher and continued to accelerate throughout the day, ending at fresh record closing highs.
The Dow rallied 907.47 points or 1.71 percent to finish at 54,085.88, while the NASDAQ soared 671.10 points or 2.59 percent to end at 26,584.99 and the S&P 500 jumped 136.02 points or 1.79 percent to close at 7,736.52.
The continued strength on Wall Street comes amid an extended nosedive by the price of crude oil, with U.S. crude oil futures plummeting after Treasury Secretary Scott Bessent claimed the U.S. and Iran could reach a deal to reopen the Strait of Hormuz within the next couple days.
Later, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well. West Texas Intermediate crude for September delivery was down $4.66 or 5.80 percent at $75.68 per barrel.
Tech stocks have led the rally amid a positive reaction to earnings news from enterprise software giant Palantir (PLTR); shares of the company surged more than 25 percent it reported better than expected second quarter results and raised its full-year guidance.
In economic news, the Commerce Department said the U.S. trade deficit narrowed roughly in line with estimates in June. The trade deficit shrank to $73.3 billion in June from $77.6 billion in May. Economists had expected the trade deficit to decrease to $73.0 billion.
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